Financial Analysis of Fertiliser Use

L. Connolly, B. Moran

OUTLINE

Farm Numbers : Current & 2015 Trend & Distribution Farm Incomes Trend In Fertiliser Usage Fertiliser Cost By Farm System Fertiliser Usage Full Time/REPS/NON REPS Farms Fertiliser Usage By Region Fertiliser Cost By Level Of Enterprise Performance Summary

Categories of Farms 2003

Source: National Farm Survey, Teagasc

Viable Farm s38,700

Non-V iablePart-tim e farm s

37,000

Non-V iableTransitional Farm s

40,300

Total Farm s116,000

Categories of Farms 2015

Source: 2015 Committee Report

Viable Farm s40,000

Non-V iablePart-tim e farm s

45,000

Non-viableTransitional Farm s

14,000

Total Farm s99,000

Family Farm Income (FFI)

Source: National Farm Survey, Teagasc

Year €/Farm

1995 14,200

2000 13,500

2001 15,800

2003 14,800

2004 15,600

Family Farm Income (€) 1995 -2004

€14,200€15,600

Source: National Farm Survey, Teagasc

8000

10000

12000

14000

16000

18000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

FFI-Current FFI-Real

Family Farm Income (€) 1995 -2004

€14,200€15,600

Source: National Farm Survey, Teagasc

8000

10000

12000

14000

16000

18000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

FFI-Current FFI-Real

€11,800

Farm Income by System - 2004

Source: National Farm Survey, Teagasc

DairyingDairying/Other

Cattle Rearing

Cattle Other

Mainly Sheep

Mainly Tillage All

34,400 24,900 7,300 8,700 11,000 24,000 15,600

FFI €/Farm

Direct Payments & FFI - 2004

34420

10970

24010

15560

7290

0

10000

20000

30000

40000

Dairying CattleRearing

Sheep Tillage All

€/Farm

FFI DPs/SubsSource: National Farm Survey, Teagasc

Direct Payments & FFI - 2004

34420

1502010970

24010

15560

7290

1355010700

22090

10150

0

10000

20000

30000

40000

Dairying CattleRearing

MainlySheep

Tillage All

€/Farm

FFI DPs/SubsSource: National Farm Survey, Teagasc

0100200300400500600700800900

€/H

A

Dairying

Dairying/Other

Cattle Rearing

Cattle Other

Mainly Sheep

Mainly Tillage

Farm Income by Enterprise - 2004

Source: National Farm Survey, Teagasc

Trend In Fertiliser Cost/Farm

€/Farm1990 1,9951995 2,3802000 2,6202001 3,0802002 3,0202003 3,0752004 2,940

Source: National Farm Survey, Teagasc

Trend In Fertiliser Cost/Farm

Year Fertiliser Fertiliser€/Farm % Direct Costs

1990 1,995 211995 2,380 192000 2,620 192001 3,080 212002 3,020 192003 3,075 202004 2,940 19

Source: National Farm Survey, Teagasc

Trend In Fertiliser Cost/Farm

Year Fertiliser Fertiliser Fertiliser€/Farm % Direct Costs % Farm Income

1995 2,380 19 192000 2,620 19 182001 3,080 21 192002 3,020 19 202003 3,075 20 202004 2,940 19 19

Source: National Farm Survey, Teagasc

Fertiliser Cost – All Farms - 2004

DairyingCattle

Rearing Sheep Tillage All

Fertiliser €/Farm 5,800 1,230 1,580 7,490 2,940

Source: National Farm Survey, Teagasc

Fertiliser Cost – All Farms - 2004

DairyingCattle

Rearing Sheep Tillage All

Fertiliser €/Farm 5,800 1,230 1,580 7,490 2,940

% Direct Costs 17 19 16 26 19

Source: National Farm Survey, Teagasc

Fertiliser Cost – All Farms - 2004

DairyingCattle

Rearing Sheep Tillage All

Fertiliser €/Farm 5,800 1,230 1,580 7,490 2,940

% Direct Costs 17 19 16 26 19

% Farm Income 17 17 14 31 19

Source: National Farm Survey, Teagasc

Fertiliser Cost – Fulltime Farms -

2004

DairyingCattle

Rearing Sheep Tillage All

Fertiliser €/Farm 6,115 2,990 3,445 12,266 5,947

Source: National Farm Survey, Teagasc

Fertiliser Cost – Fulltime Farms -

2004

DairyingCattle

Rearing Sheep Tillage All

Fertiliser €/Farm 6,115 2,990 3,445 12,266 5,947

% Direct Costs 17 20 18 26 19

Source: National Farm Survey, Teagasc

Fertiliser Cost – Fulltime Farms -

2004

DairyingCattle

Rearing Sheep Tillage All

Fertiliser €/Farm 6,115 2,990 3,445 12,266 5,947

% Direct Costs 17 20 18 26 19

% Farm Income 17 19 17 32 19

Source: National Farm Survey, Teagasc

0

2000

4000

6000

8000

10000

12000

14000

Dairying CattleRearing

Sheep Tillage All

€/F

arm

Full time farm All farms

Fertiliser Cost Fulltime v All Farms 2004

Source: National Farm Survey, Teagasc

Fertiliser Cost By Region 2004

EastSouth-East West

Farm Income €/farm 20,800 24,600 8,600

Source: National Farm Survey, Teagasc

Fertiliser Cost By Region 2004

EastSouth-

east West

Farm Income €/farm 20,800 24,600 8,600

Fertiliser €/farm 4,480 5,390 1,250

Source: National Farm Survey, Teagasc

Fertiliser Cost By Region 2004

EastSouth-East West

Farm Income €/farm 20,800 24,600 8,600

Fertiliser €/farm 4,480 5,390 1,250

Fertiliser % direct cost 21 20 16

Source: National Farm Survey, Teagasc

Fertiliser Cost By Region 2004

EastSouth-East West

Farm Income €/farm 20,800 24,600 8,600

Fertiliser €/farm 4,480 5,390 1,250

Fertiliser % direct cost 21 20 16

Fertiliser % Farm Income 22 22 14

Source: National Farm Survey, Teagasc

Fertiliser Cost By Region 2004

EastSouth-East West

Farm Income €/farm 20,800 24,600 8,600

Fertiliser €/farm 4,480 5,390 1,250

Fertiliser % direct cost 21 20 16

Fertiliser % Farm Income 22 22 14

% National total fertiliser 9 23 10

Source: National Farm Survey, Teagasc

Fertiliser Cost REPS v NON-REPS Farms 2004

DAIRYINGCATTLE

REARING SHEEP TILLAGE ALL

REPS 4,040 1,430 1,510 3,860 2,160€/Farm

Fertiliser Cost REPS v NON-REPS Farms 2004

DAIRYINGCATTLE

REARING SHEEP TILLAGE ALL

REPS 4,040 1,430 1,510 3,860 2,160

NON-REPS 6,280 1,130 1,620 9,170 3,290

€/Farm

0100020003000400050006000700080009000

10000

Dairying CattleRearing

Sheep Tillage All

REPS NON-REPS

Fertiliser Cost REPS v NON-REPS Farms 2004

Fertiliser Cost by Performance -Dairying - 2004

Bottom Middle Top

25% 50% 25%

Gross Margin €/Ha 1,210 2,044 2,990

Fertiliser €/Ha 130 144 180

LUs/Ha 1.7 2.0 2.4

Dairying

Fertiliser Cost by Performance - Suckling - 2004

Bottom Middle Top

25% 50% 25%

Gross Margin €/Ha 540 600 835

Fertiliser €/Ha 44 40 55

LUs/Ha 1.5 1.6 1.9

Single Suckling

Fertiliser Cost by Performance - Sheep - 2004

Bottom Middle Top

25% 50% 25%

Gross Margin €/Ha 245 670 1,200

Fertiliser €/Ha 52 50 87

Ewes/Ha 6.5 8.4 12.4

Mid-Season Lamb

Fertiliser Cost by Performance - 2004

Bottom Middle Top

25% 50% 25%

Gross Margin €/Ha 590 910 1,260

Fertiliser €/Ha 187 176 160

Yield Tonne/Ha 9.1 10.7 12.0

Winter Wheat

SUMMARY

Farm Numbers Declining / Viable Farms Constant

Farm Income Virtually Static

Dairying Profitable/Drystock in Difficulty

Fertiliser Cost Per Farm Static

Tillage & Dairy Farms – Biggest Users

Fertiliser Cost 52% Higher on NON-REPS Farms

Enterprise Performance – Highest Fertiliser Cost on Top

Performance (except cereals)